(Solved): 5. Deriving the short-run supply curve Consider the competitive market for sports jackets. The fol ...

5. Deriving the short-run supply curve Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly make a profit, suffer a loss, or break even at each price. On the following graph, use the orange points (square symbol) to plot points along the portion of the firm's short-run suply to prices where there is positive output. (Note: You are given more points to plot than you need.) Suppose there are 9 firms in this industry, each of which has the cost curves previously shown. On the following graph, use the orange points (square symbol) to plot points along the portion of the industry's short-run supply curve that corresponds to prices where there is positive output. (Note: You are given more points to plot than you need.) Then black symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. Note: Dashed drop lines will automatically extend to both axes. At the current short-run market price, firms will in the short run. In the long run,